DOWNTOWN : Short-Term Funds to Businesses Offered

A community development bank created to invigorate the south Los Angeles economy after the 1992 riots is offering a short-term financing program for small- and mid-sized manufacturing and service businesses anywhere in Los Angeles.

The Southern California Business Development Corp., which was initiated by the city and funded by a group of local banks, already makes long-term loans to south Los Angeles businesses turned down by traditional banks. The bank, which has $10 million in financing, has made $1.4 million in loans to create 118 jobs since it began 18 months ago, said Al Davis, a commercial loan officer with the Downtown-based bank.

Davis said a survey of smaller Los Angeles-area businesses showed that owners needed cash to cover a short period of time. For example, small businesses often lacked money between filling an order or contract and being paid. The new program, which was launched last month, is funded by a $1-million grant from the city’s Community Development Department.

The short-term loan program is available to businesses for working capital, accounts payable funding, contract-receivable bridging and equipment financing. Loan amounts range from $10,000 to $100,000. The program also offers businesses technical assistance at no cost, Davis said.

The Southern California Business Development Corp. is at 714 W. Olympic Blvd.

Information: (213) 765-7950.